Homework Answers
| Required A | |||
| Income would | Increase | by | 46,000 |
| Should west division be eliminated | Yes it should be elimited | ||
| Required B | |||
| Income would | Increase | by | 70,000 |
| Should west division be eliminated | No it should not be elimited | ||
| Required C | |||
| $666,000 is minimum amount of revenue required to justify continuing the operation of west devision | |||
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Rundle Transport Company divides its operations into four divisions. A recent income statement for its West...
Perez Transport Company divides its operations Into four divisions. A recent Income statement for its West...
Perez Transport Company divides its operations Into four divisions. A recent Income statement for its West Division follows: PEREE TRANSPORT COMPANY Went Division Income Statement for the Year 2019 Revenue Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs Net loss $ 610,000 (460,000) (61,000) (81,000) (51,000) (141,000) $(184,000) Required a. By how much would companywide Income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able...
Return to question Dudley Transport Company divides its operations into four divisions. A recent ...
Return to question Dudley Transport Company divides its operations into four divisions. A recent income statement for its West Division follows: West Division Income Statement for the Year 2019 Revenue Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs (210,000) (30,800) (42,e00) (24,000) 78,000 (84,000) Net loss Required a. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able to increase...
West Division Income Statement for Year3 $ 300, 000 (210, 000) (30, 000) (42, 000) (24,...
West Division Income Statement for Year3 $ 300, 000 (210, 000) (30, 000) (42, 000) (24, 000) (78, 000) Revenue Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs $(84, 000) Net loss Required a. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able to increase its revenue to $324,000 by raising its prices. Determine the amount of the increase...
Okoboji Company manufactures wooden canoes, and has four operating divisions: East, West, North, and South. Each...
Okoboji Company manufactures wooden canoes, and has four operating divisions: East, West, North, and South. Each division manufactures a unique model of canoe. During the first quarter of 2017, total net operating income was $70,000. A breakdown by division was as follows: East West North South Sales $ 550,000 $750,000 $950,000 $450,000 COGS 460,000 480,000 575,000 400,000 S & A expenses 120,000 220,000 250,000 125,000 Net Op. Income $ ( 30,000) $ 50,000 $125,000 $ (75,000) An...
Part 1 Rundle Company, which expects to start operations on January 1, 2018, will sell digital...
Part 1 Rundle Company, which expects to start operations on January 1, 2018, will sell digital cameras in shopping malls. Rundle has budgeted sales as indicated in the following table. The company expects a 12 percent increase in sales per month for February and March. The ratio of cash sales to sales on account will remain stable from January through March. Required Complete the sales budget by filling in the missing amounts. Determine the amount of sales revenue Rundle will...
Exercise 6-11 Segmented Income Statement (LO6-4] Wingate Company, a wholesale distributor of electronic equipment, has been...
Exercise 6-11 Segmented Income Statement (LO6-4] Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,645,000 643,600 1,001,400 1,102,000 $ (100,600) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Sales Variable...
Exercise 6-11 Segmented Income Statement (L06-4) Wingate Company, a wholesale distributor of electronic equipment, has been...
Exercise 6-11 Segmented Income Statement (L06-4) Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,665,000 544,050 1,120,950 1,233,000 $ (112,050) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Sales Variable...
Division Central East West Total Company $ 1,535,000 648,000 0 0 0 Sales Variable expenses Contribution...
Division Central East West Total Company $ 1,535,000 648,000 0 0 0 Sales Variable expenses Contribution margin Traceable fixed expenses Divisional segment margin Common fixed expenses not traceable to divisions Net operating loss 887,000 788,000 99,000 $ 10,500 88,500 0 $ 0 $ 0 $ $ Reg 1 Req 2A Req 2B The Marketing Department has proposed increasing the West Division's monthly advertising by $24,000 based on the belief that it would increase that division's sales by 15%. Assuming these...
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement:
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales $1, 000,000 Variable expenses 390,000 Contribution margin 610,000 Fixed expenses 625, 000 Net operating income (loss)$ (15,000) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Required: 1. Prepare a contribution format income statement segmented by divisions. 2-a. The Marketing Department has proposed increasing the West Division's...
Toxaway Company is a merchandiser that segments its business into two divisions—Commercial and Residential. The company’...
Toxaway Company is a merchandiser that segments its business into two divisions—Commercial and Residential. The company’s accounting intern was asked to prepare segmented income statements that the company’s divisional managers could use to calculate their break-even points and make decisions. She took the prior month’s companywide income statement and prepared the absorption format segmented income statement shown below: Total Company Commercial Residential Sales $ 795,000 $ 265,000 $ 530,000 Cost of goods sold 535,300 148,400 386,900 Gross margin 259,700 116,600...
Perez Transport Company divides its operations Into four divisions. A recent Income statement for its West Division follows: PEREE TRANSPORT COMPANY Went Division Income Statement for the Year 2019 Revenue Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs Net loss $ 610,000 (460,000) (61,000) (81,000) (51,000) (141,000) $(184,000) Required a. By how much would companywide Income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able...
Return to question Dudley Transport Company divides its operations into four divisions. A recent income statement for its West Division follows: West Division Income Statement for the Year 2019 Revenue Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs (210,000) (30,800) (42,e00) (24,000) 78,000 (84,000) Net loss Required a. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able to increase...
West Division Income Statement for Year3 $ 300, 000 (210, 000) (30, 000) (42, 000) (24, 000) (78, 000) Revenue Salaries for drivers Fuel expenses Insurance Division-level facility-sustaining costs Companywide facility-sustaining costs $(84, 000) Net loss Required a. By how much would companywide income increase or decrease if West Division is eliminated? Should West Division be eliminated? b. Assume that West Division is able to increase its revenue to $324,000 by raising its prices. Determine the amount of the increase...
Exercise 6-11 Segmented Income Statement (LO6-4] Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,645,000 643,600 1,001,400 1,102,000 $ (100,600) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Sales Variable...
Exercise 6-11 Segmented Income Statement (L06-4) Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement: Sales Variable expenses Contribution margin Fixed expenses Net operating income (loss) $ 1,665,000 544,050 1,120,950 1,233,000 $ (112,050) In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information: Sales Variable...
Division Central East West Total Company $ 1,535,000 648,000 0 0 0 Sales Variable expenses Contribution margin Traceable fixed expenses Divisional segment margin Common fixed expenses not traceable to divisions Net operating loss 887,000 788,000 99,000 $ 10,500 88,500 0 $ 0 $ 0 $ $ Reg 1 Req 2A Req 2B The Marketing Department has proposed increasing the West Division's monthly advertising by $24,000 based on the belief that it would increase that division's sales by 15%. Assuming these...
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